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A number of hurdles suggest that liquid natural gas exports are unlikely to begin before 2020

Offshore natural gas finds have been among the big stories in the sector over the past several years. The Italian oil company ENI reports 40 trillion cubit feet (tcf) of recoverable natural gas and American giant Anadarko reports 30tcf.

These projections, if proven, would place Mozambique among the top fifteen countries in total gas reserves.

Unlike coal where massive investments have already been made, the future of the gas sector is far less clear. Although exploration has led to ever-expanding reserves, it is important to note that no company has yet made the formal decision to develop a liquid natural gas (LNG) project in Mozambique.

South Africa’s troubled mining industry…lessons for Mozambique?

The future of mining in South Africa
by Peter Leon, October 05 2012 

As the Marikana commission of inquiry hearings have tellingly reminded us, the deaths were not a proud moment in South Africa’s embryonic democracy. It was, in some respects, not an unsurprising moment either for South Africa’s troubled mining industry. It could, however, prove to be the catalyst in crafting a new deal for the industry.

Mining was at the veritable crossroads well before 46 people tragically lost their lives during an illegal and unprotected six-week strike at Lonmin’s Marikana platinum mine from early August.

Firmino Mucavele rightly says…..”You can’t eat minerals!”

One of Mozambique’s top economists, Firmino Mucavele, has warned that, despite the rapid development of the mining industry, Mozambique will go nowhere if it does not build up its agriculture. Cited by Radio Mozambique, Mucavele, who was recently distinguished by NEPAD (New Partnership for Africa’s Development) for his work on agricultural development, warned that you can’t eat minerals – minerals run out, and the resources derived from mining do not guarantee food security.

According to Mucavele, “70 to 80 per cent of the investment in mineral resources is foreign and only 20 per cent of the returns stay in Mozambique”.

Check out the Guardian article….

Congrats to David Smith for his excellent article, challenging many of us in development in Mozambique and other resource rich countries to ask the ever mosre important question — who will gain from all of this future wealth?

Check out David’s article at :

Thomas Friedman is right….Pass the Books. Hold the Oil.

Thomas Friedman is right. It is only “great to have oil, gas and diamonds,” if “they’re used to build schools and a culture of lifelong learning.


In Mozambique, the prospect of billions of dollars of revenues from recently discovered natural gas and coal present a tremendous developmental opportunity for investment in future generations.

If I had a million dollars…

Many of us could spend a few moments daydreaming about winning the lottery or finding a pot of gold at the end of a rainbow.  But in resource rich countries like Mozambique, the discovery of coal and natural gas, among other mineral resources, can place a Government within a tempest of rapidly evolving circumstances where decisions with regard to the legal, policy and fiscal regimes can mean the difference between sustainable development for all or battling the resource curse for decades to come.